Justin Shore, EA, a specialist in tax planning for real estate investors, shares invaluable insights on year-end tax strategies. He discusses how to qualify for 100% bonus depreciation on vehicles and real estate and the nuances of short-term rental timing. Justin highlights the challenges of qualifying for Real Estate Professional Status late in the year and emphasizes key deadlines for retirement accounts. Listeners will learn practical tips to maximize deductions and avoid common pitfalls, ensuring a smoother tax season ahead.
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volunteer_activism ADVICE
Buy The Right Vehicle Before Year-End
Purchase qualifying vehicles before year-end if you need immediate deductions and can document 50%+ business use.
Prefer vehicles over 6,000 lbs GVW to maximize bonus depreciation and avoid passenger-vehicle limits.
volunteer_activism ADVICE
Lock In Short-Term Rental Rules
If you plan a short-term rental this year, document at least two third-party guest stays and market activity before year-end.
Track and record material participation hours aggressively, and involve a spouse to combine hours if needed.
insights INSIGHT
Contract Date Can Change Bonus Depreciation
Properties under a binding contract before Jan 20 might be subject to earlier bonus depreciation rules.
Review acquisition contracts to confirm whether 40% or 100% bonus depreciation applies.
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In this episode of the Tax Smart REI Podcast, Thomas Castelli and Justin Shore discuss essential year-end tax strategies for real estate investors looking to close out 2025 strong. As Q4 winds down, they walk through the most effective levers you can pull before December 31 to minimize taxes, maximize deductions, and set yourself up for a smoother filing season.
From vehicle deductions and short-term rental timing to real estate professional status, cost segregation, and the latest SALT deduction updates, Thomas and Justin share practical insights for both active and passive investors. They also highlight common pitfalls, like letting the tax tail wag the dog, and explain how to apply these strategies correctly in your own situation.
You’ll learn:
- How to qualify for 100% bonus depreciation on vehicles and real estate in 2025
- What it really takes to lock in short-term rental tax benefits before year-end
- Why REPS qualification is nearly impossible to start from scratch in Q4
- When to complete a cost segregation study (and when it can wait)
- How the updated SALT cap could impact your AGI and deductions
- Key deadlines for 401(k)s, IRAs, HSAs, and paying your kids through your business
- Why bookkeeping and documentation now will save you headaches in tax season
Whether you’re a seasoned investor or just looking to make smart year-end moves, this episode breaks down the most valuable tax strategies for real estate professionals, with clear guidance on how to apply them responsibly and in compliance with the IRS.
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Tax Smart Real Estate Investors Podcast